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Hovsepian was born in 1945 in Tehran, Iran into an Armenian middle-class family. He had three younger brothers: Edward, Roubik and George. Although Armenian-born individuals are Christian, Haik made a personal profession of faith in Christ as his savior when he was 15, a profession to foreign church. The vast majority of Armenians (97%) belong to the Armenian Apostolic Church. In 1966, upon completion of his mandatory military service, Haik married Takoosh Ginagosian. In 1967, he pastored his first church in Majidieh, a suburb of the capital Tehran. Not long afterwards, he served in the military and was stationed in Gorgan, a city in Mazanderan, a northern province of Iran near the Caspian Sea, where he established a house church.

In 1969 Hovsepian, his wife and their six-month-old child were driving from Tehran to Gorgan with an American missionary family, when their car struck an unlit tractor-trailer. The four children aboard were killed. The adult passengers survived, but Hovsepian and Takoosh suffered broken legs, from which they recovered.

They returned to Gorgan, where they served in church pastoral work despite hardship and persecution. Hovsepian had a strong motivation to evangelise Iranian Muslims. He was an outspoken Christian apologist, evangelist and a gifted musician.

He was responsible for initiating increased collaboration between evangelical churches within Iran after the Iranian Revolution. He became the Chairman of the Council of Protestant Ministers of Iran.

Hovsepian spoke up for the rights of Christians in Iran. In 1993 he was one of only two church leaders to refuse to sign a declaration stating that they would not allow Muslims or Muslim converts into their churches. He also refused to sign a statement that Christians enjoyed full rights in Iran. He compiled a detailed report on violations of religious freedom and invited Professor Reynaldo Galindo Pohl, the United Nations Special Representative to Iran, to visit the country and meet Protestant ministers and government officials to discuss these violations. He also met the Ministry for Islamic Guidance for Minorities to call for the government to respect the rights of religious minorities set out in the 1979 Constitution. Bishop Hovsepian and the denomination he represented, the Assemblies of God, were ordered to comply with the following directives:

Church services could not be held in Persian, the official language of Iran;

Church members must be issued membership cards and produce them upon attendance;

Membership lists, complete with addresses, must be handed over to governmental authorities;

Meetings must be confined to Sunday, not Friday the officially recognized day of Muslim worship;

Only members could attend Sunday meetings; and

New members could only be added to the membership and admitted to meetings once the Ministry of Information and Islamic Guidance had been notified.

Haik deliberately disobeyed and defiantly declared that "Never would [he or his ministers] bow down and comply with such inhumane and unjust demands" and that "our churches are open to all who want to come in.”

He was killed after protesting about the treatment of his friend and colleague Mehdi Dibaj at the hands of the Iranian government. Hovsepian mounted a campaign for Dibaj, and on January 16, 1994, Dibaj was released. Three days later Hovsepian vanished from Tehran. His death was reported to his family on January 30, 1994. While the government initially denied all involvement, Iranian Christians and independent observers claimed that he was murdered for his beliefs.

Takoosh and her four children (Rebekkah, Joseph, Gilbert, and Andre) eventually migrated to California, to be surrounded by a large diaspora of Armenians and Persians, including family members and friends from Tehran. Takoosh and her children are frequently asked to speak at conferences, and their children are in different Christian ministries. Haik’s brothers, who work as pastors, are also ministering outside Iran.